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The owner of a stationery shop notes that the shop took 9.2 lakh rupees in the year just ended against 8.0 lakh rupees five years earlier, and concludes that the shop is now selling a greater quantity of goods than it did then. In setting the two sums side by side, what does the owner take for granted?

Competition practiceLogical / Critical
  • AThat the shop stocked the same kinds of goods in both years
  • BThat the prices at which the goods are sold have not risen much over the five years, so that the larger sum of money stands for a larger quantity of goods
  • CThat the shop was open for the same number of days in both years
  • DThat no new stationery shop has opened in the neighbourhood during the five years

Step-by-Step Solution

Money taken is quantity multiplied by price, so a fifteen per cent rise in takings is consistent with selling rather fewer goods if prices have risen by more than that. Unless the rupee is treated as buying about what it bought five years ago, the two sums cannot be read as a statement about quantity at all. The range of stock, the number of trading days and a new rival are minor beside that.
Answer: B) That the prices at which the goods are sold have not risen much over the five years, so that the larger sum of money stands for a larger quantity of goods

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